What Is Meant by the Term 'Junk Bond

question 8

Multiple Choice

What is meant by the term 'junk bond'?

• A) It is a financial instrument with predominantly debt characteristics but offering high rate and high risk, and sometimes offering an equity kicker.
• B) It is a financial instrument with predominantly equity characteristics but offering high dividends and high risk, and sometimes offering a linked debt kicker.
• C) It is a worthless bond.
• D) It is a financial security issued by retail chains selling inexpensive items.

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Definitions:

Cattell

A psychologist known for his work in personality theory and the development of psychometric tests.

Psychological Types

Categories or groups of individuals based on their psychological characteristics, often used in personality assessment.

Data Collection Techniques

Methods and tools used to gather information, facts, or data to analyze and make decisions, including surveys, interviews, observations, and experiments.

Observed Behavior

Actions or reactions of an individual that can be directly seen and recorded by others.